CUET Preparation Today
| Consider a market consisting of two farms producing same quality of rice. The market demand curve and the market supply curve for rice are given by: qD = 250 p for 0 ? p ? 250 = 0 for p > 250 qS = 150 + p for p ?10 = 0 for 0 ?p < 10 What will be equilibrium price? |
100 50 80 70 |
| 50 |
| Since at equilibrium price market clears, we find the equilibrium price by equating market demand and supply and solve for p. 250-p = 150+ p 100 = 2p 50 = p |
